Dalio: World on the Brink of Capital War, Gold Remains Top Hedge Tool

Odaily News Ray Dalio stated in an interview at the Dubai World Government Summit that the world is nearing the brink of a capital war, with funds being weaponized as countries engage in competition through trade embargoes, blocking capital market access, and leveraging debt. Ray Dalio pointed out that European investors holding dollar-denominated assets fear sanctions, while the US is also concerned about a halt in European capital inflows. History shows that capital wars are often accompanied by foreign exchange and capital controls, and sovereign wealth funds and central banks are already preparing for this. Furthermore, Ray Dalio believes gold remains the best option for storing wealth and is an effective tool for hedging against economic downturns and diversifying risks. He advises investors to maintain a fixed proportion of gold allocation in their portfolios. (Jin10)